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In Switzerland, Yuh and Swissquote are two popular brokers. Yuh and Swissquote both use the same trading system provided by Swissquote. And Yuh is owned 50% by Swissquote, the other 50% being held by PostFinance.
Since they are both popular and use the same system, I thought it would be interesting to compare them. Therefore, this article will compare Yuh vs Swissquote in detail. I will review their fees, features, and pros and cons. By the end of this article, you will know which broker you should choose based on your needs.
Swissquote is a large and well-established broker. They are among the biggest brokers in Switzerland and provide many services.
As a broker, Swissquote provides many features and access to many investing instruments, as we will see later.
Swissquote was founded in 1996 and has over 700 employees as of 2023. It is a very well-established broker and has a good reputation.
Swissquote itself has a banking license so that it can store your money directly. They currently have several hundreds of thousands of users.
Yuh is a joint venture by Swissquote and PostFinance. Both companies own 50% of Yuh. And Yuh (like PostFinance) uses the trading backend provided by Swissquote. So, there will be some similarities between Yuh and Swissquote.
Yuh is a recent product. Yuh started in May 2021. The service has been growing very quickly since its inception.
Yuh is not only a broker app but also a bank app. They are trying to be one app for all your finances. For that, they currently have a broker account and a bank account. But they plan to expand onto third pillars as well.
Yuh aims to make investing very easy and available to all. As a result, they are relatively limited in terms of features for the sake of making everything simpler.
However, Yuh does not have a banking license. They rely on Swissquote for the banking and trading part.
Features – Yuh vs Swissquote
We start with a comparison of the features of Yuh vs Swissquote. As I mentioned before, Yuh is also a bank account, so they have some banking features, but I want to focus on the investing features of both companies.
Also, both brokers have some cryptocurrency features, but I will only discuss the stock market in this comparison of Yuh vs Swissquote.
On this side, they are very different. Swissquote has a web application and a mobile application, while Yuh only has a mobile application.
Swissquote provides stock market order types such as market orders, limit orders, stop orders, and trailing orders. On the other hand, Yuh only provides market orders. This is generally fine for most people since market orders work well for most trades. However, I think limited orders would be an important addition for Yuh. There are cases where limit orders are handy.
One significant difference is that Yuh limits access to some stocks and ETFs. They pick a list of stocks and funds each investor can access. The idea is that they do not want their users to be overwhelmed by the vast choice of most brokers. On top of that, they are also renaming the funds to help users understand the funds better. The renaming part is a major issue with Yuh because some funds are now named obtusely.
For instance, one of the ETFs they offer is VWRD (Vanguard FTSE All-World UCITS ETF). This ETF invests in more than 3,500 stocks worldwide. This index invests in all these companies only based on their size, nothing else. But Yuh calls it Global Blue Chips, which is entirely wrong and misleading customers.
A blue chip is a name for large and financially sound companies. This ETF does not only invest in blue chips. So, you have to be very careful about the name of the funds on Yuh.
One advantage of Yuh over Swissquote is that Yuh allows fractional trading. Yuh even allows fractional trading for Swiss stocks, which is rare in Switzerland. Swissquote does not have any option for fractional trading.
An interesting feature of Swissquote is the ability to transfer shares to and from another broker. This makes it more flexible if you want to change brokers later. On the other hand, Yuh does not offer. This means that you will have to sell all your positions if you want to change from Yuh to another broker.
Finally, Yuh only offers access to stocks, while Swissquote also provides access to bonds, futures, and options. This may be an issue for some investors, but in most cases, investors should have enough.
So, overall, Swissquote has many more features than Yuh. On the other hand, Yuh may be simpler to use because users will not be overwhelmed by the number of features and instruments they can access. Nevertheless, I think that Yuh is currently a little too limited. And I think they should stop renaming funds in a confusing (and wrong) way.
Fees – Yuh vs Swissquote
When you are investing in the stock market, fees are extremely important. This is the primary way investors can optimize for returns by not giving away fortunes in fees.
Custody fees are very important because you will pay these fees regardless of the operations you do in your account. I strongly recommend avoiding custody fees that are a percentage of your funds because this will quickly get out of hand.
Yuh has no custody fee. Swissquote will charge you a 0.025% custody fee per quarter (0.10% per year). But there is a minimum of 20 CHF per quarter and a maximum of 50 CHF per quarter. On top of that, Swissquote charges a 0.03% yearly fee on assets above 1’000’000 CHF.
Both brokers charge a 0.95% currency conversion fee. This fee is automatically charged when you buy (or sell) a security in another currency. For instance, if you buy shares in an American company, you will pay this fee. This fee is significant, but there is no winner since they both use the same fees. I just wish that both of them would lower this fee.
We can now look at prices for buying and selling stocks. Yuh and Swissquote charge very different fees and use very different systems for fees.
Yuh’s system is extremely simple. You will pay 0.50% of the total transaction, with a minimum of 1 CHF.
At Swissquote, you pay different fees based on the stock exchange and the value of the transaction. For instance, here are the fees for the Swiss Stock Exchange (SWX):
- 0 – 500: 5 CHF
- 500.01 – 1000: 10 CHF
- 1000.01 – 2000: 20 CHF
- 2000.01 – 10’000: 30 CHF
- 10’000.01 – 15’000: 55 CHF
- 15’000.01 – 25’000: 80 CHF
- 25’000.01 – 50’000: 135 CHF
- From 50’000.01: 190 CHF
And here are the fees for American stock exchanges (NYSE or Nasdaq):
- 0 – 500: 5 USD
- 500.01 – 1000: 10 USD
- 1000.01 – 2000: 20 USD
- 2000.01 – 10’000: 30 USD
- 10’000.01 – 15’000: 55 USD
- 15’000.01 – 25’000: 80 USD
- 25’000.01 – 50’000: 135 USD
- From 50’000.01: 190 USD
Finally, you can also trade some ETFs for a flat fee of 9 CHF. But this only includes ETFs listed on the Swiss Stock Exchange, and the list is pretty limited.
Here is a comparison of the fees for operations on Swiss Stocks:
For small operations, Yuh can be significantly cheaper than Swissquote. However, for large operations of more than 6000 CHF, Yuh becomes more expensive than Swissquote.
For completeness, we can also show the same for US stock:
Since the fees are the same but in USD, the graph is the same as the previous one.
Finally, we look at the comparison for an ETF that is part of the ETF Leaders of Swissquote:
Once again, Yuh is cheaper for small operations, but the threshold is smaller. Starting at 1800 CHF, Yuh becomes more expensive than Swissquote. And if you trade very large operations on Swiss ETFs, Swissquote can be much cheaper than Yuh.
Overall, in terms of fees, it is easy to compare both. If you are doing extensive operations, Swissquote will be cheaper than Yuh. However, Yuh can be significantly more affordable for small operations than Swissquote.
If you often trade Swiss ETF (on the Swissquote ETF Leaders list), Swissquote may be significantly cheaper. But again, only if you are doing large enough operations.
On top of that, we should not forget that Swissquote has a custody fee while Yuh does not.
So, it all boils down to the size of your operations. If you regularly trade more than 6000 CHF (or USD) in one operation or more than 2000 CHF on an ETF Leader, you should opt for Swissquote. Otherwise, Yuh will be cheaper.
When investing, you will likely trust a significant amount of money from the broker. Therefore, you need good safety for these assets.
The comparison is quite simple since Yuh uses Swissquote to custody the shares and the cash.
Therefore, the safety of both brokers is precisely the same. Your cash is protected up to 100’000 CHF.
And your securities are held in custody accounts in your name. In case of bankruptcy, your securities should be safe, and you can get them back during the bankruptcy procedure. It may take some time, but this should be safe.
Finally, we look at the reputation of Yuh vs Swissquote.
While it is not a perfect source of trust, Trustpilot is an excellent place to find reviews of many services.
On Trustpilot, Yuh receives a 2.6 out of 5, while Swissquote receives a 3.6 out of 5. At first glance, it seems that Yuh has a poorer reputation than Swissquote.
When we look at bad reviews of Yuh, we see many interesting things. Many complain because they get too many questions when some money arrives in the account, even for selling things online. Many people also complain that getting out of the bank is very compliant and process-heavy. Some people also complain about the difficulty of joining customer services. Finally, we also get many complaints about canceled orders.
It is interesting to note that I also got several similar complaints about Yuh from my readers.
On the positive side, people are pretty happy about the service’s ease of use. And we also get some positive feedback about the customer service.
On Swissquote’s side, the negative reviews are mainly about the high fees. Some people also complain about the difficulty of accessing customer service. Finally, people also say using the web interface is complex.
On the plus side, we get many reviews about the security and safety of the bank. Many reviews also talk about the fees much lower than traditional banks.
Overall, it seems that Swissquote has a significantly better reputation than Yuh. Some of the technical issues reported by users of Yuh are slightly worrying to me.
Yuh vs Swissquote Summary
We can summarize our Yuh vs Swissquote comparison with a short comparison table:
No custody fees
Finally, we can summarize Yuh vs Swissquote in a few points:
- Yuh is easier to use than Swissquote.
- Swissquote is cheaper for very large transactions.
- Yuh is cheaper for small to medium transactions.
- Swissquote has many more options for trading.
- Swissquote has significant custody fees (Yuh has none).
- Both brokers use the same trading system.
- Both brokers offer the same security.
- Yuh seems to have more technical issues than Swissquote.
- Swissquote gets better reviews from its customers.
Overall, both Yuh and Swissquote are interesting brokers. They both have advantages and disadvantages.
Overall, I prefer Swissquote over Yuh because Swissquote offers me access to the entire stock market, not only a subset. And I dislike that Yuh is using misleading names for their ETFs.
That being said, Yuh is a good broker for people starting in the stock market who want a simple experience. And Swissquote is excellent for advanced investors that invest large sums of money.
As far as Swiss brokers are concerned, Yuh and Swissquote are two great Swiss brokers. You can take a look at the best Swiss brokers.
However, they cannot compare well when we compare against foreign brokers. If you are ready to use a foreign broker, Interactive Brokers is a great choice. You can read my review of Interactive Brokers for more detail.
What about you? Which do you prefer, Yuh or Swissquote?
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